Bitcoin Mining – Is Bitcoin Mining Profitable?

Is Bitcoin Mining really Profitable??

What Is Bitcoin Mining?

Simply speaking, this is how to earn Bitcoin, using your hardware power. More technically and comprehensively, Bitcoin Mining is how the peer to peer digital currency system over the Bitcoin Network is maintained by keeping record of all Bitcoin transactions that take place.

Since Bitcoin is a decentralized cryptocurrency with no control taken by any authorities or organizations, rather it’s managed and being on the move by every each individual user worldwide, there need some ones that take care of the job maintaining the public ledger(Block Chain) and recording all transactions that occur in the network, so that the whole system is kept going properly.

With the purpose for smooth operation of Bitcoin Network and the cryptocurrency, the Bitcoin Network encourages people to participate in Bitcoin Mining by rewarding miners with particular amount of Bitcoin for their tasks done for validating Bitcoin transactions, generating a block, solving the Proof of Work problems, and finally finding the solution by mathematical works which is done by hardware.

That’s exactly how Bitcoin Mining works, so the reason why people participate in Bitcoin mining is simply to get rewarded and earn Bitcoin passively while their hardware is mining. But as a result, that’s also how Bitcoin and the currency network system is maintained, thanks to individual miners’ maintenance works(their own mining processes) which take place from whole over the world.

How Much Can You Earn From Bitcoin Mining?

It massively depends on each type of hardware you own. Depending on which hardware you have for Bitcoin mining, you could make either quite glamorous profit or EVEN loss.

Because all the costs incurred for carrying out your Bitcoin mining are one thing you should closely consider for your profitability calculation. That basically costs you electricity fees for mining hardware that consumes electricity, and mining pool fee(0% to 3%) if you use a mining pool. And other maintenance expenses to keep your mining process run.

So most importantly, to make it profitable, choosing a right mining hardware with good hash rate and power efficiency is the first thing you should make sure.

So getting to the point, the range how much you can earn from Bitcoin mining is massively from -$$$(Minus Profit) to around $1,000 a month for the case of using a single mining rig.

The detailed profitability using each mining hardware explained just below, scroll down! 🙂

Profit Prediction According to Each Hardware

This is for your profit expectation using each mining rig accordingly, which is based off of REAL experiments.

LIST of being NON PROFITABLE for Bitcoin Mining

Computer(Desktop, Laptop): Just skip it. This is never to bring you any single penny of profit but only screw up your computer burnt up due to the high processing power usage for Bitcoin mining, according to the current block difficulty. Maybe great way to learn how to destroy your computer with nothing to earn.

Antminer U1/U2/U3: NOT profitable. You will even have some loss of money mining with this miner set due to electricity efficiency.Hardware Costs: $45 – $80 (USD)Hash Rate: 1.80/2.00/11.00 GH/sPower Watts: 2.00/2.00/52.00Power Cost: $0.13 per kWhBitcoin Difficulty: 1347001430558.57000Monthly Net Profit: Lose About $0.10 (U1/U2) to $4.26 (U3)

Antminer S3: NOT profitable. Improved Hashpower rate compared to the mentioned ones above, but you will still end up with some loss, mining with this.Hardware Costs: $260 (USD)Hash Rate: 453.00 GH/sPower Watts: 355.00Power Cost: $0.13 per kWhBitcoin Difficulty: 1347001430558.57000Monthly Net Profit: Lose about $8.02

LIST of being PROFITABLE for Bitcoin Mining

1. Antminer S5: Finally the profitable one. This has quite decent hash power and it can earn you around $100 a month. Appox 5 to 9 months taken to meet Break Even according to the current mining difficulty.Hardware Costs: $500 to $800Hash Rate: 4730 GH/sPower Watts: 1600.00Power Cost: $0.13 per kWhBitcoin Difficulty: 1347001430558.57000Monthly Net Profit: EARN $113.42

2. Antminer S9: Best one as a home miner’s hardware for Bitcoin mining. It produces outstandingly greater profit in Bitcoin, compared to all the other ones. The cost of the rig would be a problem due to its being highly over-priced, caused by its insane high demands & popularity in market.Hardware Costs: $3,000 to $5,000 (USD)Hash Rate: 13500.00 GH/sPower Watts: 1300.00Power Cost: $0.13 per kWhBitcoin Difficulty: 1347001430558.57000Monthly Net Profit: EARN $629.46

What to Prepare to Start Mining Bitcoin

Bitcoin Mining Rig: As repeatedly spoken, it needs a mining rig for mining Bitcoin unless you’re working on other altcoins with easier block difficulty. Mining Rig is a hardware specially designed and highly optimized only for mining.

Mining Software: The main job of mining software is to connect your Bitcoin miners to the Blockchain and to mining pools. It manages your mining process while actual mining process is handled by a mining rig(hardware). This acts as sort of control center that monitors and give a control in mining process. To download a Bitcoin Mining software, you can easily find a freeware around on the internet.

Bitcoin Mining Pool: choosing your best mining pool is the next step you should do in accordance with your condition and preference. Check it out here: Mining Pool list Worldwide.

Bitcoin Wallet: This is where all your earned/mined Bitcoin will be stored. To make sure the best security, choosing a highly secured, reliable wallet, PLUS setting 2FA for extra safety. a. Local Bitcoin : Peer to peer Bitcoin trade site with your local people nearby. Bitcoin wallet is automatically created, connected to your account once an account made. b. Spectro Coin : Bitcoin exchange and wallet services offered. c. Coinbase : One of the most known site as for Bitcoin trading and wallet.

Conclusion – Can You Make Money from Bitcoin Mining?

My answer is maybe, “Yes and No”. It just highly depends on which mining rig you are using. But one thing obvious is you cannot make any profit, even will probably make some loss because of its high consumption of electricity if you’re using a low quality miner which is usually less than $500 in the price.

So to make it profitable, it, first of all, needs to invest some kind of money in purchasing a good mining hardware that could be somewhat burdening, especially to newbies in this game. (But you still shouldn’t overlook the point: The value of the machine itself held by you when re-selling.)

As an alternative to the high cost of mining hardware and deadly much of up-front costs to getting into Bitcoin mining yourself, there have been services coming out in to market, called “Cloud Mining” services. They are kind of businesses that have high-end quality mining equipment in their mining farms, offering use of their hardware for customers who pay for it. In return, customers get certain rate of hashpower from those mining services which earns them Bitcoin every second during their contracted time.

The process of Cloud Mining is absolutely conducted and done remotely from the companies’ mining farms so that customers don’t need to care about purchasing a costly mining rig or managing all headache mining process on their end. Consequently, it gives people chances to start out mining in a relatively affordable way for those who don’t want a serious amount of up-front costs for it.

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